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MEA says Government gets bad advice

20 Sep '07
2 min read

The New Zealand Manufacturers and Exporters Association (MEA) says that the Government's policy on manufacturing is in chaos with decisions increasingly being based on academic thinking rather than tested practical advice.

“The Government is getting very bad advice when it comes to dealing with manufacturing and schemes that involve spending taxpayers' money on transferring activity and jobs offshore illustrate that”, says Chief Executive John Walley.

“New Zealand companies have to be given the policy settings to compete successfully on the international stage; exporting is the key to any a strong economy. In some cases relocating activity offshore, even if ownership is retained locally, in necessary, but it is not the silver bullet”.

“New Zealand cannot build a solid manufacturing and exporting base once our industrial capability falls below critical mass. Where is the thinking going that essentially offers no support for local activity, but at the same time, provides incentives for offshore relocation”.

Mr. Walley says that the consequence is that there is no structure or cohesiveness in Government policy towards manufacturing and local capability.

“On the one hand, over a million dollars has been wasted on setting up Manufacturing+ and the Manufacturing Advisory Group, essentially run by bureaucrats and not practitioners who live the issues of exchange rates, staff skills, supply chain deficiencies and operating costs every day”.

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